Debt Ceiling Deal – US avoids first ever government debt default

US President Joe Biden and Republican House Speaker Kevin Mccarthy reached a last minute agreement on Sunday, 28th May to raise the US debt ceiling. The deal suspends the $31.4 trillion debt ceiling until Jan. 1, 2025, allowing the U.S. government to pay its bills. The agreement includes spending caps for the federal budget in the first two years in 2024 and 2025, and then sets appropriations targets for the following four years. The agreement, billed as the Fiscal Responsibility Act, has cleared key votes on the house floor on 31st May and needs to be approved by the Senate to take effect. Once approved, the bill would avoid a historic US government default and raise the nation’s debt ceiling. < div class="wp-block-image"> ...